Sofidel: Enterprises and Sustainable Finance

Aug 7, 2024 1:00 PM ET

Sofidel

Public resources are not enough in the path toward the green transition and, therefore, private business investment becomes crucial to achieve some important goals such as countering the climate crisis and reducing inequality.

This is also why international bodies and initiatives (such as UNEP, the United Nations Environment Program) are stimulating greater collaboration between the business world and financial operators who, together, can contribute to the construction of a more sustainable development model with a medium- to long-term orientation.

On the positive side, there is a growing number of organizations that believe in impact investing, that is, in choosing to invest in organizations and funds that generate a measurable social and environmental impact while at the same time producing an economic return for investors.

Impact investing aims not only at reducing emissions but also at combating inequality and involves the selection of securities in the portfolio according to environmental, social and governance criteria. In fact, investments that use certain standards defined by the OECD, UN and UN Agencies, such as ILO, UNEP, UNICEF, UNHCR, are favored. In many cases, the Agenda 2030 is used in the analysis phase prior to investment as a tool for assessing the socio-environmental aspects associated with the activities to be implemented.

In this changing scenario, companies that have made sustainability a strategic driver for financing their investments are resorting to instruments such as green bonds and green loans used to support interventions related to energy transition and combating the climate crisis.

It is a commitment that in many cases involves the entire upstream and downstream supply chain of the enterprise and that contributes to the achievement of the goals the organization has set for itself.

Read more about topics related to environmental and social sustainability, themes and projects close to us in terms of culture and corporate modus operandi on our Soft&Green blog.